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The similarity system

  • #5,881
  • Aug 17, 2014 3:54pm Aug 17, 2014 3:54pm
Quoting Baillie
{quote} Based upon this image the transient zones can be at swing highs or lows but some are not: I would bet most are not, they would appear to be so because of the swings after the zones are created. Look at zones 2,3,4 from the left. {image}
Attached Image (click to enlarge)
Click to Enlarge Name: Capture.PNG Size: 32 KB

there are two conditions
  • #5,882
  • Aug 17, 2014 3:58pm Aug 17, 2014 3:58pm
i would agree with the assumption that we got to look for prices in between the top and bottom of a candle.

Thats what , at least , i read out of Definition 2
TWEE, revoke my membership.
  • #5,883
  • Aug 17, 2014 3:58pm Aug 17, 2014 3:58pm
Here is an example of what i am talking about: orange rectangle.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm15 missed zone.png Size: 74 KB
  • #5,884
  • Aug 17, 2014 4:00pm Aug 17, 2014 4:00pm
Quoting burnssss
{quote} {image} there are two conditions
intelligent observation burnsss...

Furthermore, Once you expect a zone to be h-transient, then as soon as price goes above it, assuming the zone is developing at the top, you can declare the area immediately above the zone as h-recurrent and then look for a sell.

The following things will happen.

If your zone turns out to be h-recurrent, your sell will still win.
if your zone turns out to be h-transient, your sell will still win. EITHER way, you will win!!

I leave you to figure this out.

That is why I can win many times without a loss, even if the pips are small. I can kill it on every time frame because whatever the state of the market, I am guaranteed a win, except in exceptional cases, those sample points in zero-measure sets.
  • #5,885
  • Aug 17, 2014 4:07pm Aug 17, 2014 4:07pm
Quoting burnssss
{quote} {image} there are two conditions
So, what i am pointing out is proposition/definition #2?
  • #5,886
  • Aug 17, 2014 4:13pm Aug 17, 2014 4:13pm
Quoting Eurusdd
{quote}intelligent observation burnsss... Furthermore, Once you expect a zone to be h-transient, then as soon as price goes above it, assuming the zone is developing at the top, you can declare the area immediately above the zone as h-recurrent and then look for a sell. The following things will happen. If your zone turns out to be h-recurrent, your sell will still win. if your zone turns out to be h-transient, your sell will still win. EITHER way, you will win!! I leave you to figure this out. That is why I can win many times without a loss, even...
Thank you for this, explanation.
  • #5,887
  • Aug 17, 2014 4:18pm Aug 17, 2014 4:18pm
Quoting Freefox
{quote} Actually that is a good point that transient zones don't have to be at swing hi/lo's - they can develop inter-bar and something my indicator won't pickup. I'll have to have a rethink how to capture those type of transient zones and code a modification. Will have to be tomorrow now..
Freefox, that would be great if you can include the mid bar zones. Would it also be possible to make the arrows external variables? I would prefer to just have the zones and so could nullify the arrows if they are external but no worries if it's a pain to do.
  • #5,888
  • Aug 17, 2014 4:20pm Aug 17, 2014 4:20pm
Quoting burnssss
{quote} {image} there are two conditions
Thanks for pointing this out.
  • #5,889
  • Aug 17, 2014 4:25pm Aug 17, 2014 4:25pm
Quoting Eurusdd
{quote}intelligent observation burnsss... Furthermore, Once you expect a zone to be h-transient, then as soon as price goes above it, assuming the zone is developing at the top, you can declare the area immediately above the zone as h-recurrent and then look for a sell. The following things will happen. If your zone turns out to be h-recurrent, your sell will still win. if your zone turns out to be h-transient, your sell will still win. EITHER way, you will win!! I leave you to figure this out. That is why I can win many times without...
Is your use if the word EXPECT important here? When you say EXPECT, does that mean you don't wait the h bars for the transient zone to be confirmed, you act as though it already is one even though subsequent bars with the next h bars may invalidate it?
*** Shoot for the moon. Even if you miss, you'll land among the stars. ***
  • #5,890
  • Aug 17, 2014 4:27pm Aug 17, 2014 4:27pm
Thank you very much eurusdd.
Baillie,
At the moment I can not assure that these areas correspond to the definition 2 of eurusdd.
I'm just saying that there is a condition and an exception.
Either way, the problem is to find "k" and "h" optimally, and contrast information with the calculation of probabilities.
h (T) varies by X and [X (t) + - k] varies Y.
To solve this problem we need 2 equations, and we have 2 unknowns.
That is, "k" and "h" should vary in each bar, so to satisfy the condition, there is a possible area.
I think the approach is this.
  • #5,891
  • Aug 17, 2014 4:29pm Aug 17, 2014 4:29pm
Quoting Eurusdd
{quote}intelligent observation burnsss... Furthermore, Once you expect a zone to be h-transient, then as soon as price goes above it, assuming the zone is developing at the top, you can declare the area immediately above the zone as h-recurrent and then look for a sell. The following things will happen. If your zone turns out to be h-recurrent, your sell will still win. if your zone turns out to be h-transient, your sell will still win. EITHER way, you will win!! I leave you to figure this out. That is why I can win many times without a loss, even...
Ok but how do we know that when the zone is not finished developing? How do we know that we actually got above it?
  • #5,892
  • Aug 17, 2014 4:30pm Aug 17, 2014 4:30pm
Quoting Freefox
{quote} Is your use if the word EXPECT important here? When you say EXPECT, does that mean you don't wait the h bars for the transient zone to be confirmed, you act as though it already is one even though subsequent bars with the next h bars may invalidate it?
You don't wait. once the previous h bars, give you a hint that a transient zone may be forming, you act assuming that will be the case and act. (This is where the secret is) Riskless profit in most cases.
you can declare the area immediately above the zone as h-recurrent and then look for a sell.

The following things will happen.

If your zone turns out to be h-recurrent, your sell will still win.
if your zone turns out to be h-transient, your sell will still win. EITHER way, you will win!!
  • #5,893
  • Aug 17, 2014 4:32pm Aug 17, 2014 4:32pm
Quoting hepsibah
{quote} Freefox, that would be great if you can include the mid bar zones. Would it also be possible to make the arrows external variables? I would prefer to just have the zones and so could nullify the arrows if they are external but no worries if it's a pain to do.
Yeah, I'll get the mid bar zones sorted but like I say will have to look at it tomorrow now. As for the arrrows, just select a colour that matches your chart background for the indicator buffer and they won't show for you
*** Shoot for the moon. Even if you miss, you'll land among the stars. ***
  • #5,894
  • Aug 17, 2014 4:35pm Aug 17, 2014 4:35pm
Quoting burnssss
Thank you very much eurusdd. Baillie, At the moment I can not assure that these areas correspond to the definition 2 of eurusdd. I'm just saying that there is a condition and an exception. Either way, the problem is to find "k" and "h" optimally, and contrast information with the calculation of probabilities. h (T) varies by X and [X (t) + - k] varies Y. To solve this problem we need 2 equations, and we have 2 unknowns. That is, "k" and "h" should vary in each bar, so to satisfy the condition, there is a possible area. I think the approach is this....
I understand, I was playing with the newest indicator and I noticed that it only plotted swing hi's/lo's and I remembered seeing the pic EURUSDD posted with the examples I pointed out. I did not remember the 2nd definition till you pointed it out.
  • #5,895
  • Aug 17, 2014 4:36pm Aug 17, 2014 4:36pm
Quoting Freefox
{quote} Yeah, I'll get the mid bar zones sorted but like I say will have to look at it tomorrow now. As for the arrrows, just select a colour that matches your chart background for the indicator buffer and they won't show for you
Freefox. thanks for the indicator. i dont know why but after a while, the boxes disappear from the chart and all i have left are the arrows, until i delete and drop it again on the chart.
  • #5,896
  • Aug 17, 2014 4:36pm Aug 17, 2014 4:36pm
Quoting Eurusdd
{quote} You don't wait. once the previous h bars, give you a hint that a transient zone may be forming, you act assuming that will be the case and act. (This is where the secret is) Riskless profit in most cases. you can declare the area immediately above the zone as h-recurrent and then look for a sell. The following things will happen. If your zone turns out to be h-recurrent, your sell will still win. if your zone turns out to be h-transient, your sell will still win. EITHER way, you will win!!
Thanks for that clarification - that is VERY, very important and something I will change my indicator to mark on the recent developing zones.
*** Shoot for the moon. Even if you miss, you'll land among the stars. ***
  • #5,897
  • Aug 17, 2014 4:38pm Aug 17, 2014 4:38pm
Let us supposed we know the yellow area but the market has not develop the blue area yet. We can then assume that when the region B is matured, it will be transient. So, we declare the area A as recurrent. We then move ahead to find sell position above B.
Now, if the market pulls back into B, we win. If B turns out to be transient, our assumption of A as recurrent will give our sell a profit.
Both ways, we will win!!!
Attached Image (click to enlarge)
Click to Enlarge Name: Capture.PNG Size: 12 KB
  • #5,898
  • Aug 17, 2014 4:41pm Aug 17, 2014 4:41pm
So as soon as we break above the last fractal top ( h bar before ) , we can consider a new zone forming ?
the market is not random but anything can happen.
  • #5,899
  • Aug 17, 2014 4:41pm Aug 17, 2014 4:41pm
Quoting feline207
{quote} Freefox. thanks for the indicator. i dont know why but after a while, the boxes disappear from the chart and all i have left are the arrows, until i delete and drop it again on the chart.
Ok, thanks for that feedback. Maybe some error in the realtime 'live' logic. That's one problem with developing indicators on a weekend when the markets are closed you can't test it realtime. I'll pick it up tomorrow and make sure it copes when new realtime bars are added.

Thanks again for pointing it out.
*** Shoot for the moon. Even if you miss, you'll land among the stars. ***
  • #5,900
  • Aug 17, 2014 4:42pm Aug 17, 2014 4:42pm
Quoting Eurusdd
Let us supposed we know the yellow area but the market has not develop the blue area yet. We can then assume that when the region B is matured, it will be transient. So, we declare the area A as recurrent. We then move ahead to find sell position above B. Now, if the market pulls back into B, we win. If B turns out to be transient, our assumption of A as recurrent will give our sell a profit. Both ways, we will win!!!{image}
Thank you for that post. I understand that h-bars are before and after current bar, and the blue area is still unknown. What I dont understand is how do we calculate the height of the ractangle area, and how do we make difference where B actually ends and zone A begins. As it is still forming, how can we be sure about the span/height of that area?
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